Hyperliquid, once a dominant player in the on-chain perpetuals market with a 71% share in May, has seen its market share plummet to 38%. This decline is attributed to the rise of competing platforms Lighter and Aster, which now hold 16.8% and 14.9% of the market, respectively. The on-chain perpetuals market has expanded significantly, from just two protocols in 2022 to over 80 today, with a cumulative trading volume nearing $700 billion in the past four weeks. The growth in competition, spurred by minimal barriers to entry, is reshaping the landscape. Recently, the rivalry intensified when Hyperliquid listed Aster's token with 3x leverage, prompting Aster to counter with Hyperliquid's HYPE perpetuals and a 300x leverage offer. As competitors gain traction, Hyperliquid's previously unchallenged position is being threatened, highlighting a rapid evolution in decentralized trading options.

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